A firm considers a project with the following cash flows: time-zero = +20,000, years 1-5 = -4,500. Should the project be accepted if the cost of capital is 10 percent?
A) Yes, the IRR of the project is 12.5 percent.
B) No, the IRR of the project is 4.06 percent.
C) Yes, the IRR of the project is 4.06 percent.
D) No, the IRR of the project is 12.5 percent
Answer: C) Yes, the IRR of the project is 4.06 percent.
Business
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